The parent,which controls all debt retirement for the consolidated entity can use its available resources to purchase and retire its own bonds if they choose not to use the fair value option.

Question

Quizplus · Accepted Answer

According to the statement, the parent entity has the ability to use its own resources to purchase and retire its own bonds. This is true, regardless of whether they choose to use the fair value option or not.

The Parent,which Controls All Debt Retirement for the Consolidated Entity